factual

Does the cure period for Craters & Freighters defaults apply to amounts owed to affiliates?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

Item Provision Section in Franchise Agreement Summary
g. "Cause" defined – curable defaults Section 19.2 Curable Defaults: You have 30 days to cure
any of the following defaults: non-payment of
any amount due and owing to us or any
Affiliate of ours as required by us pursuant to
the Franchise Agreement, Operations Manuals,
or otherwise; failure or refusal to submit, when
due, any report or other data, information, or
supporting records relating to the Franchised
Business; failure or refusal to accurately report
the Adjusted Gross Sales of the Franchised
Business; failure or refusal to operate a
warehouse within the Premises necessary for
the operation of the Franchised Business;
uncured default under the Lease for the
Premises; offer or sale of any products or
services not authorized by us; failure or refusal
to comply with the Operations Manuals or,
more specifically, any of the System Standards;
failure or refusal to pay any taxes due in
connection with your operation of the
Franchised Business; failure or refusal to
obtain and/or maintain all applicable licenses
and permits relating to the operation of the
Franchised Business; failure or refusal to
obtain our written approval or consent when
required; or failure or refusal to comply with
any other provision of the Franchise
Agreement, Operations Manuals, or any
System Standard.

h. "Cause" defined – non-curable Section 19.1 Non-Curable Defaults: failure or refusal to defaults open the Franchised Business within 90 days after execution of the Franchise Agreement;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee has 30 days to cure certain defaults, including non-payment of amounts owed to Craters & Freighters or any of its affiliates. This means that if a franchisee fails to pay money owed to either Craters & Freighters or one of its affiliates, they will have a 30-day period to correct the default and avoid further action by the franchisor.

This cure period provides a franchisee with an opportunity to resolve payment issues and maintain their franchise agreement. It is important for prospective franchisees to understand that this cure period applies not only to payments owed directly to Craters & Freighters but also to payments owed to any of its affiliates.

However, the FDD also defines certain defaults as non-curable. These include repeated non-payment of any amount due and owing to Craters & Freighters or any affiliate. Therefore, while a single instance of non-payment may be curable with 30 days, repeated instances are not, and can lead to termination of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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